Munich Re Reports 56% Drop in Q4 Profit on Spate of Natural Disasters

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German reinsurer munich re on wednesday stated a 56 percentage decline in fourth sector net earnings after a spate of herbal catastrophes however proposed elevating its dividend for 2018.

Net earnings fell to 238 million euros ($271.Thirteen million) from 538 million euros a 12 months earlier but met expectations.
It proposed a dividend of 9.25 euros in keeping with proportion, up from 8.60 euros for 2017 and better than analysts had predicted, a reuters poll confirmed.

For the whole year, the corporation published a leap in internet profit to 2.275 billion euros, in step with its goal, from 392 million euros in 2017, the most expensive 12 months ever for the industry after a slew of natural disasters.

Munich re had aimed to put up a 2018 full-yr earnings of two.1 to two.5 billion euros.

“we are very satisfied with the overall end result for 2018,” leader monetary officer christoph jurecka said.

The drop in net profit inside the fourth region observed wildfires in california, with losses of around 430 million euros.

Munich re’s mixed ratio, a degree of profitability, turned into one zero five.1 percentage within the fourth sector for its reinsurance business, worse than 103.9 percent a year in the past.

Munich re and the coverage enterprise are bouncing back from a chain of fundamental hurricanes, fires and earthquakes in north america in 2017. Reinsurers were below stress in recent years from falling costs amid excessive competition.

Munich re stated that charges of settlement renewals in january were “solid” however that the marketplace surroundings changed into expected to improve throughout the following round in april.

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